She called for "proper accountability" to "raise civil servants' game" and improve quality and standards after three Department for Transport (DfT) civil servants were suspended following the Government's U-turn which will cost taxpayers at least £40m.

FirstGroup was expected to take over the franchise from Sir Richard Branson's Virgin Rail which runs services between London and Scotland.

But Transport Secretary Patrick McLoughlin scrapped the deal, admitting the DfT made "unacceptable mistakes" in managing bids - and laid the blame "wholly and squarely" on civil servants.

Hodge said on Thursday: "It exposes in a very stark way that the present conventions on accountability between civil servants and ministers to Parliament and the public aren't working.

"It's yet another example ... of where the civil servants themselves have not really captured and taken on the role that is expected of them in today's society.

"People came into the civil service in the past because they were interested in policy, they wanted to devise policy.

"Today, the job of a civil servant is much more about delivering programmes, and that requires a different set of skills."